Top CD Rates in 2025: 5-Year CD at 4.80% APY from BMO Alto & Best Short-Term Rates May 2025

Key Highlights – May 2024 CD Rates

• BMO Alto now leads with a 5-year CD rate of 4.80% APY, the best long-term option nationwide.
• The bank also offers a competitive 4-year CD at 4.70% APY, securing second place in that term.
• MutualOne Bank provides the highest overall short-term CD rate at 5.65% APY for 3 months.
• Newtek Bank offers a 6-month CD at 5.55% APY, ideal for medium-term savers.
• One-year CDs pay up to 5.40%, while 2- and 3-year CDs offer up to 5.25% and 5.00%, respectively.
• Current CD rates remain slightly below last fall’s peak but outperform inflation, making them a smart choice for savers.

Below is a detailed overview of top CD options from our trusted partners and a nationwide ranking of the best certificates of deposit for all terms.

Major Bank Raises Long-Term CD Rates

While smaller banks and credit unions often lead with top CD yields, BMO Alto—a division of the banking giant BMO—has introduced a new 5-year CD at 4.80% APY, available online. They also raised their 4-year CD rate to 4.70% APY, offering competitive alternatives for longer-term investors. Shorter-term rates from BMO Alto are solid but can be outpaced by other institutions.

Secure High Rates for Up to 23 Months

MutualOne Bank continues to offer the highest CD rate nationwide at 5.65% APY on a 3-month term, providing a quick return locked until August. For those seeking longer guarantees, Newtek Bank’s 6-month CD at 5.55% APY locks in your rate well into 2025.

Additionally, several CDs offer rates of 5.50% or higher for terms up to 9 months. Credit Human stands out with a flexible 18-23 month CD at 5.25%, extending your earnings through fall 2025 or spring 2026.

Long-Term CDs Lock in Rates Through 2027 and Beyond

Opting for CDs with terms of two years or more is wise amid expectations that U.S. interest rates may decline over the next few years. You can lock in a 3-year CD at 5.00% APY, guaranteeing returns through 2027, or choose options with rates in the mid- to high-4% range for 4 to 5 years.

Pro Tip

These elevated CD rates serve as a powerful hedge against ongoing inflation, which currently sits near 3.5%. By investing in these top CDs, you can outpace inflation by 1 to 2 percentage points, preserving your purchasing power.

CD Rates Remain Near Historic Highs

Though CD rates have eased slightly from their October 2023 peak of 6.50%, they remain significantly higher than the last two decades' averages. Earlier this year, 30 CDs offered at least 5.50% APY; today, eight still do, offering excellent earning potential.

Remember, choosing the absolute highest APY isn’t the only strategy. Securing a long-term CD now can protect your earnings before potential rate cuts in 2024 or 2025.

Jumbo CDs Offer Enhanced Rates on Select Terms

For larger deposits, jumbo CDs can yield more. For example, State Bank of Texas pays 5.50% APY on a 12-month jumbo CD, while State Department Federal Credit Union offers 5.41% APY for 15 months. However, jumbo rates don’t always surpass standard CDs, so comparison shopping is key.

Outlook: Where Are CD Rates Headed in 2024?

Following aggressive Federal Reserve rate hikes between March 2022 and July 2023, interest rates are at a 22-year high, benefiting CD investors. However, the Fed has maintained steady rates since July 2023, awaiting sustained inflation decline before considering cuts.

Recent inflation data shows stubborn persistence, delaying anticipated rate reductions. Fed Chair Jerome Powell indicated that it may take longer than expected before rate cuts begin, with futures markets pricing in a possible first cut around September 2024.

Consequently, CD rates may plateau for the foreseeable future. If the Fed eventually lowers rates, CD yields will likely decline. Savers should consider locking in attractive rates now before any potential drop.

The Fed has five more scheduled meetings in 2024, with the next concluding June 12, which will be closely watched by investors.

Additional Savings Options for May 2024

• High-Yield Savings Accounts offering up to 5.00%
• Best CD Rates up to 4.50%
• Money Market Accounts yielding up to 4.40%

About Our Rate Research

ZAMONA identifies the highest nationally available CD rates by analyzing daily data from over 200 federally insured banks and credit unions. Our rankings exclude institutions with high membership fees or limited availability to ensure you access the best offers nationwide. Minimum deposits considered are $25,000 or less to maximize accessibility.

How ZAMONA Finds the Best CD Rates

We meticulously track and update CD rates every business day, focusing on federally insured institutions available in at least 40 states. We exclude credit unions requiring donations over $40 for membership to maintain fairness. Our thorough methodology ensures you receive accurate and actionable rate comparisons.

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